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The existence of 3PL (third-party logistics) is nothing new, but where does 4PL (fourth-party logistics) come into the picture, and are there any other ‘PL’s you should know about?
The difference between 3PLs, 4PLs and other ‘PL’s is highly debated, even among experts in the supply chain industry. The simplest way to think about it is that each successive type of logistics provider offers greater involvement in the supply chain than the last.
As for which one will work best for you, that depends on your business model, infrastructure, budget, and how much control you want over your supply chain.
Many eCommerce businesses choose 3PLs because they provide a good combination of support, flexibility, and cost-effectiveness. What’s more, TradeGecko integrates with 3PL providers directly (such as Amazon FBA), via our integrations with shipping apps and 3PL Central provided by Cart Rover, or through our 3PL exporter add on, which allows you to streamline your order fulfillment process across both systems.
Here’s an overview of some of the different logistics providers: